Beyond Compliance: Building a Values-Driven Workplace Co-presenter: Stephen M. Paskoff, Esq. President ELI Co-presenter: Randy Stephens, Esq. Senior Director, Internal Audit-Compliance The Home Depot Society of Corporate Compliance and Ethics 6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Traditional Learning Initiatives • Compliance has been the driver for behavior change. • Emphasis is on legal risks, with an objective of minimizing litigation and legal violations. • Behavioral standards have been based on legal requirements. • Managers have learned reactive skills (e.g., contact HR or Legal), without developing skills to handle certain issues themselves.
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Today’s Workplace Realities • More and more organizations are dealing with conduct that isn’t illegal but conflicts with corporate values. • The behaviors, whether they violate the law or not, are creating business harm. • Values are often seen as “words on paper” or are left open to interpretation. • HR is stretched to the limits, but managers don’t have the skills to integrate values into the culture and address day-to-day behavioral issues themselves.
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Going Forward • Culture driven by internal values is at least as important as compliance driven by external requirements. • Learning focused on building a values-driven culture – which encompasses legal requirements – will be more effective in addressing the full spectrum of behaviors that can impact the work environment.
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Learning Initiatives: Key Components • Top leadership involvement and commitment to building a values-based culture • Coordination between and involvement of Compliance/Legal, HR, Diversity/EEO, departmental leadership, etc. • Translation of values into clear, concise, and few behavioral standards • Integration into other key business initiatives • New managerial competencies • Ongoing, not a quick fix or one-time event
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Goals of a Compliance Program
• Values • Company Benefit • Legal • Risk Analysis • All of the Above
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The Importance of Internal Values
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Corporate Culture and Company Benefits
• Public Image • Recruitment
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Beyond Compliance – The 100 Best Companies to Work For List based on responses to questions related to: •
Employee’s attitudes about the management's credibility, job satisfaction and camaraderie
•
Company's responses to questions about demographic makeup, pay and benefit programs, company's management philosophy, methods of internal communications, opportunities, compensation practices, and diversity efforts, etc.
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Beyond Compliance – The Most Admired Companies To create the lists, executives, directors, and analysts were asked to rate companies on these eight attributes: •
Quality of management
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Quality of products and services
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Innovation
•
Long-term investment value
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Financial soundness
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People Management: Ability to attract, develop and keep talented people
•
Social responsibility www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Recruitment - Aspen Institute 2007 MBA Study
From “Where Will They Lead?” Aspen Institute Center for Business Education, p.12 www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Today’s Workplace Realities Concerns are increasing about divisive, disruptive, and subtler problem behaviors involving conduct that is:
ÎExclusionary ÎDisrespectful ÎRetaliatory ÎBullying ÎAbusive ÎNon-welcoming
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Today’s Workplace Realities Concerns are increasing about divisive, disruptive, and subtler problem behaviors involving conduct that is:
ÎExclusionary ÎDisrespectful ÎRetaliatory ÎBullying ÎAbusive ÎNon-welcoming
And… Focusing solely on legal risk won’t address or change these behaviors
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Beyond the Limits of the Law
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Today’s Workplace Realities
Legal Compliance Regulatory Issues
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Today’s Workplace Realities Business Impact
Civil Lawful Professional
Legal
Inclusive
Compliance
Productive
Regulatory Issues
Ethical
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Workplace Values
• Communication • Respect • Integrity • Excellence
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Workplace Values
• Communication • Respect • Integrity • Excellence
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Do these resemble your values?
• Those are Enron’s values. It’s not the words, it’s the behaviors and conduct that are important.
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Developing Values-Based Leaders • More and more, organizations are dealing with conduct that isn’t illegal but conflicts with their values and impacts business results. • Managers need to be able to do more than just react or call HR for help. They need new skills, not just an understanding of basic legal concepts.
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
A Model for Values Based Leadership
Build a Strong Foundation
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A Model for Values Based Leadership
Add a Layer of “Do as I Do”
Build a Strong Foundation
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
A Model for Values Based Leadership
Make it Meaningful
Learning Design
Add a Layer of “Do as I Do”
Leadership Commitment
Build a Strong Foundation
Organizational Commitment
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Leadership Action Stages™
• Model the Values • Communicate and Integrate • Hold Accountable • Welcome Concerns - Leaders • Follow Up and Reinforce
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“The Best Compliance Tools are Free"
• Start small • Get buy in from the existing organization and leaders • Don’t be afraid to hear the truth • Don’t ignore the obvious • Be a partner, not just a policeman • Do your best to hire your values and value who you hire
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
Beyond Compliance: Building a Values-Driven Workplace
Co-presenter: Stephen M. Paskoff, Esq. President ELI Co-presenter: Randy Stephens Senior Director, Internal Audit-Compliance The Home Depot
www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977
